North Korea tension hits markets

CommSec Market Close 10 Aug 17

CommSec Market Close 10 Aug 17

Traders Michael Milano, left, and Daniel Leporin work on the floor of the New York Stock Exchange, Monday, 7 August 2017. Picture: Richard Drew/APSource:AP

THE Australian market looks set to follow the negative lead of international markets and open sharply lower as growing tension between the US and North Korea send investors away from equities and toward safer havens.

At 0700 AEST on Friday, the share price futures index was down 68 points, or 1.19 per cent, at 5,631.

Across the board internationally equities have closed lower as the geopolitical tension dents investor confidence and sends them toward safer assets such as gold and US Treasuries.

In the US, the S&P 500 suffered its worst one-day loss in nearly three months while the Nasdaq lost more than two per cent.

The Dow Jones Industrial Average closed down 0.93 per cent, the S&P 500 lost 1.45 per cent and the Nasdaq Composite fell 2.13 per cent.

Locally, in economic news on Friday, Reserve Bank of Australia governor Philip Lowe appears before the House of Representatives Economics Committee. In equities, REA Group, and Baby Bunting are slated to post full-year results while News Corp releases four-quarter and full-year results and Ardent Leisure releases its preliminary unaudited figures.

National Australia Bank is expected to provide a third-quarter trading update. The Australian market on Thursday gave up early gains to close lower with investor confidence dented amid escalating tension between the US and North Korea.

The benchmark S&P/ASX200 index was down 4.8 points, or 0.08 per cent, at 5,760.9 points The broader All Ordinaries index was down 5.8 points, or 0.1 per cent, at 5,810.6 points.

Meanwhile, the Australian dollar is down against all the major currencies including an easing greenback — with the US dollar index falling 0.2 per cent. The local currency was trading at 78.76 US cents at 0700 AEST on Friday, from 78.80 on Thursday.